eBook ED Show Me How Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.30 oz. $0.09) Direct labor (0.07 hr. @ $18.00) Standard prime cost During the first week of operation, the company experienced the following actual results: a. Bars produced: 142.000.. b. Ounces of direct materials purchased: 1,178,900 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labori 9,800 hours at $17.20. Required: Materials Price Variance Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Favorable Labor Rate Variance Labor Efficiency Variance Materials Usage Variance 2. Compute the rate variance and the efficiency variance for direct labor. Print Hem Record purchase of materials 11,789 Record usage of materials $0.75 1.26 $2.01 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank. Record labor variances Check My Work 3 more Check My Work uses remaining All work saved.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Direct Materials and Direct Labor Variances
Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy!
Direct materials (8.30 oz. $0.09)
Direct labor (0.07 hr. @ $18.00)
Standard prime cost
During the first week of operation, the company experienced the following actual results:
a. Bars produced: 142.000.
b. Ounces of direct materials purchased: 1,178,900 ounces at $0.08 per ounce.
c. There are no beginning or ending inventories of direct materials.
d. Direct labori 9,800 hours at $17.20.
Required:
Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box.
1. Compute price and usage variances for direct materials.
Materials Price Variance
Favorable
Materials Usage Variance
2. Compute the rate variance and the efficiency variance for direct labor.
Labor Rate Variance
Labor Efficiency Variance
Record purchase of materials
Print Hem
Record usage of materials
11,789
3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank.
Record labor variances
$0.75
1.26
$2.01
Check My Work 3 more Check My Work uses remaining.
All work saved.
Transcribed Image Text:eBook ID Show Me How Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy! Direct materials (8.30 oz. $0.09) Direct labor (0.07 hr. @ $18.00) Standard prime cost During the first week of operation, the company experienced the following actual results: a. Bars produced: 142.000. b. Ounces of direct materials purchased: 1,178,900 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labori 9,800 hours at $17.20. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance Favorable Materials Usage Variance 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance Labor Efficiency Variance Record purchase of materials Print Hem Record usage of materials 11,789 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank. Record labor variances $0.75 1.26 $2.01 Check My Work 3 more Check My Work uses remaining. All work saved.
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